Timeline
Commission proposal - March 2023
The European Commission proposed the legislation to crack down on greenwashing by setting strict rules for environmental claims made to consumers. With over 200 eco-labels in circulation across the EU—many of them vague or misleading—the new framework would require all claims to be based on scientific evidence, independently verified, and clearly communicated.
Key elements of the proposal included:
- Substantiation: Claims must rely on recognised scientific methods and company-specific data wherever possible, with minimum criteria set for accuracy.
- Labelling: New public eco-labels will only be allowed at EU level; private schemes must prove added value and gain Commission approval.
- Agri-food sector: Voluntary green claims on food products must meet the Directive’s standards, though existing rules (like the EU organic label) remain unaffected.
- Enforcement: Member States will designate authorities to check claims, enforce rules, and impose penalties such as fines or exclusion from public contracts.
- Third countries: Products sold in the EU with environmental claims must also comply, meaning non-EU producers will need Commission-approved labelling schemes.
The aim was to ensure consumer trust in green labels while supporting the transition to a sustainable, circular economy.
The file was sent to both the European Parliament and the European Council for consideration.
European Parliament adopt position - March 2024
In March 2024, the European Parliament adopted its position on the file with 467 votes in favour, 65 against and 74 abstentions.
The Parliament's position included that claims and evidence must be assessed within 30 days, but micro-enterprises will be exempt from this. Claims based only on carbon offsetting will be banned. Companies could, however, use offsetting if they have already reduced their emissions as much as possible and use offsets for residual emissions only. Offsets must be certified, for example under the Carbon Removals Certification Framework. The Parliament position also allows green claims on products containing hazardous substances should remain possible, but this should be reviewed in the future.
Any new environmental labelling scheme in a third country used on the Union market must be rubber-stamped by the Commission. This means that any UK agriculture products on the single-market containing a 'green label' must have pre-approval.
European Council agree General Approach - June 2024
In June 2024, the Council agreed its General Approach on the file.
The General Approach maintained that clear criteria and the latest scientific evidence should be used to back up claims, but in contrast to the Parliament position, micro-enterprises will have to comply with the Directive. However, they will have an additional 14 months to comply. The General Approach would also oblige companies to communicate the type and quantity of carbon credits used.
Trialogues and potential withdrawal
The institutions entered into trialogue negotiations in 2025. However, just days before the final trialogue negotiations was set to take place (June 2025), the European People's Party (EPP) asked the Commission to withdraw the proposal, outlining that the legislation would create unnecessary burden for businesses.
The Commission stated at a press conference that they "intend to withdraw the Green Claims proposal", prompting confusion amongst political groups and industry.
The file has not been formally withdrawn, but its future remains uncertain.